OPEC compliance with oil cuts at lowest – IEA says

The International Energy Agency (IEA) says OPEC’s compliance with production cuts fell in June to its lowest levels in six months, as several members pumped much more oil than allowed by their supply deal.

OPEC’s compliance with cuts slumped to 78 per cent in June from 95 percent in May as higher-than-allowed output from Algeria, Ecuador, Gabon, Iraq, the UAE and Venezuela offset strong compliance from Saudi Arabia, Kuwait, Qatar and Angola.

“Each month something seems to come along to raise doubts about the pace of the rebalancing process.

“This month, there are two hitches: a dramatic recovery in oil production from Libya and Nigeria and a lower rate of compliance by OPEC with its own output agreement,” the Paris-based IEA said.

The OPEC and several non-OPEC producers including Russia have agreed to cut production by around 1.8 million barrels per day until…